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A $275,000 face value Province of British Columbia bond carrying a 10.6% coupon is issued on September 5, 1990, with 30 years until maturity. The
A $275,000 face value Province of British Columbia bond carrying a 10.6% coupon is issued on September 5, 1990, with 30 years until maturity. The bond is purchased on March 5, 2002, when posted rates are 5.98%. Calculate the purchase price of the bond. What is the amount of its premium or discount?
Note: The answer to #10 is $416,032.19 and the premium = $141,032.19
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